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Fabrinet – Electronic Computer Manufacturing
Fabrinet is a leading provider of advanced optical packaging and precision optical, electro-mechanical, and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and subsystems, automotive components, medical devices, industrial lasers and sensors. Fabrinet offers a broad range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, advanced packaging, integration, final assembly and testing. Fabrinet focuses on production of high complexity products in any mix and any volume. Fabrinet maintains engineering and manufacturing resources and facilities in Thailand, the United States of America, the People's Republic of China, Israel and the United Kingdom.
Analysis Results
Intrinsic Value $137.39
Latest Price $84.10
Relative Value 39% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 19.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 19.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 224 205
2023 268 225
2024 319 245
2025 381 268
2026 455 293
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 6460 million. This corresponds to a present value of 3820 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1240 million. Adding in the terminal value gives a total present value of 5050 million.

There are presently 36.8 million outstanding shares, so the intrinsic value per share is 137.39.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,352,507,000
Current Cash 547,932,000
Current Liabilities 444,358,000
Current Debt 12,156,000
Non-Cash Working Capital (NCWC) 372,373,000
Change in NCWC 51,030,000
EBIT 150,796,000
Tax Provision 2,143,000
Depreciation and Amortization 36,252,000
Capital Expenditure -44,484,000
Unlevered Free Cash Flow 191,446,556
Current Assets 1,134,856,000
Current Cash 488,123,000
Current Liabilities 337,546,000
Current Debt 12,156,000
Non-Cash Working Capital (NCWC) 321,343,000
Change in NCWC 44,240,000
EBIT 117,731,000
Tax Provision 5,763,000
Depreciation and Amortization 31,383,000
Capital Expenditure -43,507,000
Unlevered Free Cash Flow 144,157,027
Current Assets 1,023,835,000
Current Cash 437,332,000
Current Liabilities 313,048,000
Current Debt 3,648,000
Non-Cash Working Capital (NCWC) 277,103,000
Change in NCWC 21,580,000
EBIT 124,157,000
Tax Provision 5,278,000
Depreciation and Amortization 30,536,000
Capital Expenditure -18,943,000
Unlevered Free Cash Flow 152,138,800
Current Assets 854,310,000
Current Cash 332,371,000
Current Liabilities 270,117,000
Current Debt 3,701,000
Non-Cash Working Capital (NCWC) 255,523,000
Change in NCWC 4,570,000
EBIT 95,600,000
Tax Provision 3,862,000
Depreciation and Amortization 29,593,000
Capital Expenditure -35,402,000
Unlevered Free Cash Flow 90,166,845
Current Assets 798,754,000
Current Cash 285,275,000
Current Liabilities 311,272,000
Current Debt 48,746,000
Non-Cash Working Capital (NCWC) 250,953,000
Change in NCWC 93,593,000
EBIT 105,834,000
Tax Provision 6,742,000
Depreciation and Amortization 23,986,000
Capital Expenditure -70,030,000
Unlevered Free Cash Flow 146,512,660
Current Assets 673,291,000
Current Cash 284,513,000
Current Liabilities 256,018,000
Current Debt 24,600,000
Non-Cash Working Capital (NCWC) 157,360,000
Change in NCWC 31,213,000
EBIT 69,770,000
Tax Provision 6,335,000
Depreciation and Amortization 18,155,000
Capital Expenditure -40,995,000
Unlevered Free Cash Flow 71,665,204
Current Assets 527,039,000
Current Cash 255,844,000
Current Liabilities 181,048,000
Current Debt 36,000,000
Non-Cash Working Capital (NCWC) 126,147,000
Change in NCWC 9,776,000
EBIT 48,313,000
Tax Provision 3,984,000
Depreciation and Amortization 12,947,000
Capital Expenditure -51,532,000
Unlevered Free Cash Flow 15,462,531
Current Assets 464,477,000
Current Cash 233,477,000
Current Liabilities 120,629,000
Current Debt 6,000,000
Non-Cash Working Capital (NCWC) 116,371,000
Change in NCWC 7,322,000
EBIT 46,569,000
Tax Provision 1,439,000
Depreciation and Amortization 10,658,000
Capital Expenditure -10,835,000
Unlevered Free Cash Flow 52,994,747
Current Assets 364,526,000
Current Cash 149,716,000
Current Liabilities 115,429,000
Current Debt 9,668,000
Non-Cash Working Capital (NCWC) 109,049,000
Change in NCWC 29,475,000
EBIT 45,631,000
Tax Provision 2,940,000
Depreciation and Amortization 10,211,000
Capital Expenditure -10,795,000
Unlevered Free Cash Flow 72,656,376
Current Assets 360,671,000
Current Cash 115,507,000
Current Liabilities 175,258,000
Current Debt 9,668,000
Non-Cash Working Capital (NCWC) 79,574,000
Change in NCWC -37,409,000
EBIT 38,448,000
Tax Provision -1,968,000
Depreciation and Amortization 9,713,000
Capital Expenditure -38,622,000
Unlevered Free Cash Flow -27,870,000

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